Launch of the European Trustmark

13 March 2014

Domestic vs. cross-border internet purchases

Source: Eurostat, 2013 Note: % of population who ordered goods/services online from national sellers / from sellers from other EU countries in the last 12 months

-

5

10

15

20

25

30

35

- 10 20 30 40 50 60 70

Cross-border

Domestic

EU avg.

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Concerns about cross-border vs. domestic online purchases

0% 10% 20% 30% 40%

Uncertainty onrights

Data privacy

Payment security

No delivery

Guarantee

Returns

Long delivery times

Source: Civic Consulting/TNS, 2011 Note: % of consumers reporting concerns about buying products online in their own country vs. in another EU country

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% domestic % increase cross-border

Cross-border will grow twice as fast as domestic online sales

306 346 377 407 436 462

44 56

69 83

99 116

0

100

200

300

400

500

600

700

2013 2014 2015 2016 2017 2018

€ B

illio

n

350 402

446 491

535

Domestic

Cross-border

578

+21%

CAGR ’13-18

+9%

Source: EMOTA, 2013

-3-

Benefits of trustmarks for consumers

41%

48%

50%

75%

79%

85%

0% 25% 50% 75% 100%

Search trustmark for unknown retailers

Click through trustmark to check info

Decide purchase based on trustmark

Read ratings/reviews to decide purchase

Look for trustmark on retailers' sites

Consider trustmarks as meaningful

Source: Bizrate Insights, September 2013 Note: % of consumers – survey sample: 6,000 consumers

-4-

Benefits of trustmarks for merchants

• Display a trusted symbol – especially for SMEs, whose brand is not well known

• Improve confidence of new customers in purchasing from an unfamiliar webshop

• Provide assurance on payment security

• Confirm compliance of data protection rules and of consumer regulations

• Ensure accurate and timely delivery of orders

• Certify transparency of information and pricing

• Acquire guidelines and best practices for online selling

• Guarantee against risk of fraud and non-payment

• Offer redress mechanisms for dispute resolution

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Fragmentation of National Trustmarks in Europe

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Features of National Trustmarks

0% 25% 50% 75% 100%

Have internal ADR mechanisms

Perform periodic checks on compliance

Have internal certification procedure

Certification criteria are listed online

Have sanctions for non-compliance

Have certification requirements

50%

59%

63%

75%

87%

87%

Source: ECC-Net, October 2013 Note: % of trustmarks on the total number of trustmarks analysed (54)

-7-

Consumer perceptions of trustmarks in Europe

0% 25% 50% 75%

Don't trust sites with trustmarks

Don't look for trustmarks

Don't know any trustmark

Don't know what a trustmark is

37%

63%

66%

51%

53% 15% 32%

Don’t know criteria

Difficult to access trustmark features

Don’t trust trustmark provider

65%

23%

12% Don’t know how to identify

trustmark

Not important

for purchase decision

other

Source: ECC-Net, October 2013 Note: % of consumers – survey sample: 573 consumers

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EC policy options for the European Trustmark

Self-regulation Disseminate best-practices among national trustmarks

Co-regulation Define EU-wide standards for national trustmarks

EU accreditation Endorse national trustmarks compliant with EU standards

EU certification Certify compliance of individual merchants

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EMOTA European Trustmark objectives

• Enhance consumer trust in online shopping across borders

• Increase online cross-border turnover for European web merchants

• Improve international credibility and overcome language barriers of national trustmarks

• Establish harmonized certification criteria for all national trustmarks throughout Europe

• Exchange best practices across countries

• Establish an industry self-regulatory initiative in coordination with EU policies

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EMOTA European Trustmark Accreditation Criteria

A. Code of conduct with high level of consumer protection

B. Comprehensive accreditation process

C. Continuous monitoring of traders’ compliance

D. ADR schemes

E. Enforcement and sanctions

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European Trustmark logo

-12-

Co-branding of European Trustmark + National Trustmarks

Greece Austria Belgium Finland

Switzerland Spain Sweden Portugal

Germany Hungary Italy

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EMOTA European Trustmark accreditation criteria

A. Code of conduct with high level of consumer protection:

• Transparent information about the trader

• Clear, complete and accurate product description

• Transparent pricing, inclusive of all charges and taxes

• Accurate information to the customer on product availability and delivery times

• Delivery according to the specifications and timing indicated to the customer

• Clear returns process and prompt reimbursement

• Accessible customer service and timely complaint management

• Protection of personal data according to EU and national legislation

• Appropriate protection of minors

• Secure payment methods

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B. Comprehensive accreditation process:

• Documented procedure to ensures merchants’ compliance with the trustmark requirements

• Support and advice to implement improvements before the trustmark can be awarded

• Record of accreditation based on approved terms & conditions

C. Continuous monitoring of traders’ compliance:

• Minimum annual review of compliance

• Additional checks at any time

D. ADR schemes:

• Information about alternative/online dispute resolution to resolve consumer complaints

E. Enforcement and sanctions:

• Merchants need to correct any issues promptly

• Trustmark can be withdrawn if the trader does not comply with code of conduct

EMOTA European Trustmark accreditation criteria

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